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The Deferment Agreement is utilized when a debtor requires an extension of time to meet their payment obligations under an existing contract or arrangement. This document is particularly relevant in the Belgian business environment where companies need to restructure their payment obligations due to temporary financial constraints or strategic business decisions. The agreement must comply with Belgian civil and commercial law requirements, including specific provisions regarding payment terms, interest rates, and late payment regulations. A properly structured Deferment Agreement helps maintain business relationships while providing legal certainty for both parties, documenting the new payment schedule, any additional conditions or securities, and the consequences of default. It's commonly used in commercial transactions, loan arrangements, and various business contexts where payment flexibility is needed while ensuring legal protection for all parties involved.
